Corn climbs on US crop concerns soybeans firm amid supply worries

Chicago corn prices climbed on Wednesday, nearing a one-week high, while soybeans also saw gains. The rise was driven by growing concerns over declining crop conditions in the United States. Wheat prices remained steady, following a higher close on Tuesday, as disruptions in grain supplies due to the Russia-Ukraine war continued to weigh on the market.

The most-active corn contract on the Chicago Board of Trade rose 0.2% to $5.08-3/4 a bushel, marking its highest level since September 30. Wheat prices increased by 0.1% to $7.04-3/4 a bushel, and soybeans gained 0.1% to $13.04 a bushel. Traders are closely monitoring weather forecasts in the Midwest as farmers accelerate harvesting after recent rain delays. Most of the region is expected to remain dry over the next week.

The US Department of Agriculture reported that as of Sunday, US farmers had harvested 23% of their corn and 25% of their soybeans, figures below analyst expectations and the five-year average. The agency also reduced its estimate of corn crops rated in good-to-excellent condition more than expected. For soybeans, recent rains have raised concerns about crop quality and oil content.

The USDA is set to update its US corn and soybean harvest outlooks in a monthly supply-and-demand report on Friday. Meanwhile, tensions in the Black Sea persisted, with two merchant ships, including one carrying grain, hit in a drone strike on Tuesday. Another vessel was struck on Monday outside Romania's territorial waters, an attack blamed by Ukraine on Russian drones.

Meteorologist Kyle Tapley noted that a powerful El Niño is creating a split weather market in South America, improving crop prospects in Argentina while raising early concerns over dryness in northern Brazil that could threaten the country's key safrinha corn crop.